S&P Capital IQ Reiterates its BUY Rating on United Technologies, Target Price Reduced

October 20 00:00 2011

NEW YORK, October 20 (RainbowNewsLine.com) – Analyst Richard Tortoriello of S&P Capital IQ reiterates his BUY rating on the shares of United Technologies (NYSE: UTX), while adjusting his estimates for the company. The target price has been reduced from $98 to $92.

Analyst Richard Tortoriello, in a research note published yesterday mentions that the company reported its Q3 EPS ahead of the estimates due to stronger than anticipated operating performance in all its six segments. The operating margins jumped by 10 basis points despite the increased engineering expenses at pratt, analyst says. The EPS estimate for 2011 has been raised from $5.40 to $5.50 due to good Q3 results, and the 2012 EPS estimate has been reduced from $6.20 to $6.05 reflecting dilution from the planned Goodrich acquisition and risk pertaining to pension & forex, the analyst says. The 12-month target price forecast is lowered because of reduced outlook for 2012, the analyst adds.